Becoming an entrepreneurial newsagent

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Mark Fletcher speaks about the challenges facing Australian newsagents.

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Becoming an entrepreneurial newsagent

  1. 1. Building our newsagency of the future… Whatever that means…
  2. 7. Lessons from the past <ul><li>Music shops </li></ul><ul><li>Fish and Chip shops </li></ul><ul><li>Milk Bars / Convenience </li></ul><ul><li>Bookshops </li></ul><ul><li>Stationery shops </li></ul>
  3. 8. Building our newsagency of the future… Becoming an entrepreneurial newsagent.
  4. 9. Opportunities
  5. 11. The professor <ul><li>&quot;The Roman Empire that was mass media is breaking up, and we are entering an almost-feudal period where there will be many more centers of power and influence,&quot; … &quot;It's a kind of disaggregation of the molecular structure of the media.&quot; </li></ul><ul><li>Orville Schell </li></ul><ul><li>dean of the University of California at Berkeley's journalism school. </li></ul><ul><li>Business Week, Jan. 17, 2005 </li></ul>Orville Schell (photo Jane Scherr)
  6. 12. The publisher stirs <ul><li>&quot;Within our lifetimes, the distribution of news and information is going to shift to broadband,&quot; Sulzberger says. &quot;We must enter the broadband world having mastered the three key skill sets -- print, Internet, and video -- because that's what's going to ensure the future of this news organization in the years ahead.&quot; </li></ul><ul><ul><li>Business Week, Jan. 17, 2005 </li></ul></ul>
  7. 13. The epiphany <ul><li>“… as an industry, many of us have been remarkably, unaccountably complacent. Certainly, I didn’t do as much as I should have after all the excitement of the late 1990’s. I suspect many of you in this room did the same, quietly hoping that this thing called the digital revolution would just limp along.” </li></ul><ul><ul><li>ASNE, April 13, 2005 </li></ul></ul>
  8. 14. Seeing the future <ul><li>“ So, media becomes like fast food – people will consume it on the go, watching news, sport  and film clips as they travel to and from work on  mobiles or handheld wireless devices like Sony’s PSP, or others already in test by our Satellite companies..” </li></ul><ul><ul><li>Worshipful Company of </li></ul></ul><ul><ul><li>Stationers And Newspaper Makers, March 2006 </li></ul></ul>
  9. 19. Not in my lifetime
  10. 20. News
  11. 31. Magazines
  12. 42. Social media
  13. 43. Old media versus social media
  14. 45. Greeting cards
  15. 46. 123 Greetings, FREE <ul><li>123Greetings.com </li></ul><ul><li>20,000 free ecards </li></ul><ul><li>3,000 everyday, special occasions and events </li></ul><ul><li>See what cards other people in their network have sent </li></ul><ul><li>Review the highest ranked cards by MySpace users </li></ul><ul><li>No limit on cards sent </li></ul>
  16. 47. Other categories
  17. 49. “ Yes, print is a burden. It’s expensive to produce for it. It’s expensive to manufacture. It’s expensive to deliver. It limits your space. It limits your timing. It’s stale when it’s fresh. It comes with no ability to click for more. It has no search. It can’t be forwarded. It has no archive. It kills trees. It uses energy. And you really should recycle it. Wow, when you think about it, print sucks. Jeff Jarvis, BuzzMachine
  18. 50. Yes, in our lifetime
  19. 51. Where are newsagencies in all this?
  20. 57. Sophie Randall
  21. 60. What do we stand for?
  22. 61. We stand for… <ul><li>Convenience: speed, local </li></ul><ul><li>Trust: reliability, brands </li></ul><ul><li>Service: knowledgeable </li></ul><ul><li>Community: the bankable local connection </li></ul><ul><li>Where are those USPs in our businesses? </li></ul>
  23. 62. Not all newsagencies are the same. Not all newsagents are the same.
  24. 63. Not all newsagencies are the same. Not all newsagents are the same.
  25. 64. What is our Salads Plus?
  26. 65. What is our newsagency of the future? How do we find it?
  27. 66. I don’t know!
  28. 67. Come and break some rules <ul><li>Flexibility on newspaper displays </li></ul><ul><li>Real control over magazine supply </li></ul><ul><li>Reward based bonuses for year on year success </li></ul><ul><li>Books at book margins </li></ul>
  29. 68. Hard decisions about our future <ul><li>Network wide: </li></ul><ul><ul><li>Forget about territories </li></ul></ul><ul><ul><li>Resolve the exit and entry conflict </li></ul></ul><ul><ul><li>Drop the newsagency shingle </li></ul></ul><ul><ul><li>Improve supply chain efficiency for us </li></ul></ul><ul><li>Store level: </li></ul><ul><ul><li>Allocate space based on financial return </li></ul></ul><ul><ul><li>Quit declining products before they hurt </li></ul></ul><ul><ul><li>Adding categories which fit your demographic </li></ul></ul><ul><ul><li>Get serious about business </li></ul></ul>
  30. 69. What we need from existing suppliers <ul><li>Magazines: Pay on scan based sales </li></ul><ul><li>Greeting cards: Agreed pocket based KPIs </li></ul><ul><li>Stationery: Buying 20%+ better than today </li></ul><ul><li>Newspapers: Reward based on success </li></ul><ul><li>Home delivery: Open pricing of our services </li></ul><ul><li>Retail: Put a price on our real-estate </li></ul><ul><li>Vouchers: Transparent and competitive pricing </li></ul><ul><li>Our network is a valuable asset </li></ul>
  31. 70. We need to embrace change to navigate to the future…
  32. 71. Ink
  33. 72. Calendars
  34. 73. Books
  35. 74. Confectionery
  36. 75. Art
  37. 76. Gifts
  38. 77. Respecting long term partners
  39. 79. FY07/08 benchmark project <ul><li>We analysed more than 100 newsagencies in depth </li></ul><ul><li>The difference between those growing and those not is greater than ever. </li></ul>
  40. 80. Benchmark: growth areas <ul><li>Gifts: especially those associated with card giving occasions </li></ul><ul><li>Social stationery: travel journals, writing sets, invitation papers </li></ul><ul><li>Services: printing, Internet access, photo processing </li></ul><ul><li>more… </li></ul>
  41. 81. Benchmark: growth areas <ul><li>Art supplies: Location exclusivity, hero brands, habit based </li></ul><ul><li>Coffee: High margin, improves shopper comfort, habit based </li></ul><ul><li>Ink and Toner: Realigns value proposition, hero brands, habit based </li></ul>
  42. 82. Those who are growing <ul><li>Embrace disruption and understand transition </li></ul><ul><li>Understand what we stand for </li></ul><ul><li>Actively, aggressively chase change </li></ul><ul><li>Hire smart people </li></ul><ul><li>Take responsibility for their own business plan </li></ul><ul><li>Build shops that are flexible </li></ul>
  43. 83. They are entrepreneurial <ul><li>Look outside the channel </li></ul><ul><ul><li>Visit competitors and other retailers </li></ul></ul><ul><ul><li>Visit non newsagent trade shows </li></ul></ul><ul><li>Hire from outside the channel </li></ul><ul><li>Stop relying on suppliers for your business plan </li></ul><ul><li>Engage a business angel </li></ul><ul><li>Stop complaining </li></ul><ul><li>Start acting, on your business! </li></ul>
  44. 84. The newsagents of the future will be entrepreneurial Surfers, riding the wave. Having a go…
  45. 85. What do we stand for?
  46. 86. The epiphany <ul><li>“… as an industry, many of us have been remarkably, unaccountably complacent. Certainly, I didn’t do as much as I should have after all the excitement of the late 1990’s. I suspect many of you in this room did the same, quietly hoping that this thing called the digital revolution would just limp along.” </li></ul><ul><ul><li>ASNE, April 13, 2005 </li></ul></ul>
  47. 87. Our future is up to us We are not victims. We are not process workers. We are newsagents, entrepreneurs, willing and happy entrepreneurs.

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